Business Plan for Grandma's Cookie Bakery

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Added on  2021/04/24

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This assignment requires students to develop a comprehensive business plan for a small scale cookie bakery in Sedona, Arizona. The plan includes market analysis, identifying target customers, creating a unique selling proposition, developing a product line, determining pricing strategies, establishing a distribution network, and setting budgets. The document also emphasizes the importance of conducting market research, understanding customer needs, and adapting to changes in the business environment.
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Marketing Plan Template
Company Name: Gandma’s Cookie
Founder: Kristy Jordan, Sarah Smith
CEO: Kristy Jordan
Mission Statement: Provide a plethora of unique and delicious treats to the
customers
Core Product/Service: Sell Cookies both in the store as well as online
Entering What Market: Food market
Executive Summary:
This assignment projects a business plan for a cookie bakery which is situated in a popular tourist town in
Arizona of US. The owners of the company can use this plan as a strategy building guide or a guideline
for the investors. A business plan is developed to understand the prerequisites of a business idea and the
challenges and barriers which can be faced in the course of the initiation as well as operation process.
Company Description:
The company is a Small scale enterprise which will be located in Sedona, Arizona, United States. The
owners of the bakery are two passionate bakers who love baking and want to treat the customers with
their unique flavors of mouth watering cookies. The bakery will be set in a cozy area where both localities
as well as tourists can come and enjoy the products. One of the main features of the bakery will be freshly
baked cookies, the customers can choose the quantity, size, type of dough, toppings etc and wait for a
few minutes and get freshly baked customized cookie.
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Market (Environment) Description:
Political: The government in this area is stable and encourages trade and business as there is massive
inflow of tourists in this dessert town there is plenty of business opportunity.
Economic: United States is a developed country and is a land of opportunity. The economy has been
growing on a moderate speed at the beginning of 2018 with the inflation rate of around 2.38 percent.
Society: The location of the bakery is based on the home town of the two owners, the town has an
inclination towards art and culture and is also known for its natural beauty which draws a number of
tourist population in the town every year.
Technology: The owners will install quick baking oven to help them bake cookies in large batches and
also make the process fast as there is the feature of instant customized cookie option, nevertheless other
things like mixing of the dough and preparing the baking process will be done in a traditional way (Gupta,
2013).
Competitive Review:
There are a number of direct and indirect competitions in the local market, one of the major direct
competitors are The cookie Alchemist and some of the indirect competition are The fudge company,
Sedona cake couture, wildflower bread company etc. The cookie Alchemist provides quirky themed treats
for their customers; on the other hand Grandma’s cookie will have a traditional take on the cookie making
process with a twist in the flavors.
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SWOT Analysis: (Details about what this section requires can be found in the rubric for this project.)
Strengths
Traditional recipes
The feature of customization
Unique flavors based on customer
preference
Consumer centric approach
Plethora of choice from pre baked
section
Weaknesses
The owners of the company are
inexperienced in business dynamics
The time taken to bake a batch of fresh
cookies can be long for many customers
Opportunities
The customers will help create new
flavors by customizing
People of all age enjoy a treat of cookies
every now and then
Opening sections of tea and coffee
The bakers can learn cookie art and
decoration
Threats
The cookie Alchemist
Poor review form the customers
Promotional Strategy:
Using social media platform extensively is the promotional strategy that has been developed on the basis
of the target market and the budget of the company. The organisation do not have capital to spend much
on promotion hence one of the owners of the company will focus on marketing the restaurant with the
help of platforms like Facebook, Instagram and Twitter. They can connect to their customers and get
instant feedback by using these platforms. Apart from this some slaes promotion will be also used
communication through social media to the customers. Before the opening the company also wants to
hand out pamphlets to invite people to come and enjoy a free giant cookie.
Positioning:
The company will be positioned as a traditional bakery with a modern twist as the customers will be able
to see the dough and the making process as well. The target market of the company includes people of a
large age group who belong to the mid level income group, the customers can be financially independent
or dependent. Providing freshly baked modern cookies in a traditional way is the focus of the position
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strategy of the company, the customers will be assure that they will find a flavor in the bakery that will
cater to their taste buds.
Product Strategy:
The bakery will offer not only sweet treats but also savory flavored cookies for the ones who do not have
a keen sweet tooth, the idea is to spoil the customers with a wide range to choose from and also
providing them an opportunity to customize their own flavor, this will help gaining repeat customers as
they will be looking forward to try more flavors in the future. One of the major focuses of the company is to
provide the best quality in terms of the raw materials that are used in the process of baking the cookie this
will ensure that the customers are engaged to the buttery milieu of the bakery (Schneider & Spieth, 2013).
Pricing:
The company has a simple pricing strategy based on the cost of production so that the process can cover
the cost; earn a certain amount of profit as well. Competitive pricing is the strategy that the company will
adopt, for this the owners will have to find out the price of the competitors and will have to list the items at
par with them or even lower.
Distribution Strategy:
The store is the only place where the cookie will be available initially, but the owners have a plan to get
packed cookies delivered online. But the e-commerce aspect of the business will be introduced after three
years as that will be requiring other initial capital investment as well (Blackburn et al., 2013).
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Marketing Research:
The owners will conduct research to understand the demand of the product as well as determine the cost
that is preferred by the people. The target market of the company is the population out of which around 50
people can be randomly selected to fill a form which will be analyzed and will help crate the menu of the
bakery.
Budgets:
($70,000)
------------------------------------------------------------ = $ 3.5
($50,000) - ($30,000)
Controls:
In order to monitor the progress of the plan the owners have set benchmark for every month, in terms of
sales, expansion and customer relations. The owners will focus on the quality of the products and hence
they will also take feedbacks as a measure of control and will change the process accordingly, taking
feedback is one of the easiest ways of control in terms of quality as the customers will help the owners
understand their requirement which can be accordingly fulfilled (Wheadon & Duval-Couetil, 2014).
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Reference list:
Blackburn, R. A., Hart, M., & Wainwright, T. (2013). Small business performance: business, strategy and
owner-manager characteristics. Journal of small business and enterprise development, 20(1), 8-
27.
Gupta, A. (2013). Environmental and pest analysis: An approach to external business environment. Merit
Research Journal of Art, Social Science and Humanities, 1(2), 13-17.
Schneider, S., & Spieth, P. (2013). Business model innovation: Towards an integrated future research
agenda. International Journal of Innovation Management, 17(01), 1340001.
Wheadon, J. D., & Duval-Couetil, N. (2014). Business plan development activities as a pedagogical tool in
entrepreneurship education. The Journal of Engineering Entrepreneurship, 5(1), 31-48.
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